The bears are trying to extend the sell-off into a third straight day.
But let’s be frank, the selling is hardly anything to get concerned with at this point, there is little volume to it, and the VIX indicator is hardly moving either, as it still sits in the 12’s.
That means, the dip can’t be taken as anything more than just a dip. It doesn’t represent a change in the market’s attitude.
It is still a bullish stock market. So you should be looking for opportunities to get long, opportunities where stocks are bouncing off of key support levels and trend-lines. Breakouts are find, but look for those coming out of a bull flag.
Oh wait, this is supposed to be a post about bearish trade setups. Well, I’d hold off adding anything significant in terms of new short positions, instead, I would simply review the list below and know which ones will work for you and your strategy, in case the market decides to do some thing crazy out of left field.
Here’s the bearish setups to watch:
